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Etsy Payments Policy

Etsy Payments allows buyers and sellers to use various forms of payments on Etsy.com, EtsyStudio.com, and Etsy's mobile apps and other services. Etsy Payments users can pay with and accept payment by credit card, debit card, Etsy gift card, Etsy Credit, some bank transfer services, PayPal, Apple Pay, Android Pay, and the Sell on Etsy Reader—all in their local currencies. This policy explains all of your rights and obligations when using Etsy Payments.

This policy is a part of our Terms of Use. By using Etsy Payments, you’re agreeing to this policy and our Terms of Use.

1. Accepting These Terms
2. Overview
3. Third-Party Services
4. Etsy's Rights and Responsibilities
5. Seller Rights and Responsibilities
6. Appointment of Etsy as Limited Payment Collection Agent for Sellers
7. Deposits
8. Recoupment
9. Payment Processing Fees
10. Reporting Obligations
11. Termination

1. Accepting These Terms

This document (the Etsy Payments Policy or the “Policy,” for short) sets out your rights and responsibilities when you use Etsy Payments on Etsy’s services (we’ll refer to Etsy.com, EtsyStudio.com, and Etsy's mobile apps and other services as our “Services”), so please read it carefully. By using Etsy Payments, you’re agreeing to the Policy.

The Policy is a legally binding contract between you and Etsy (actually, if you transact in United States Dollars or Canadian Dollars, the contract is between you and Etsy, Inc.; if you transact in any other currency, the contract is between you and Etsy Ireland UC; but we’ll just refer to Etsy, Inc. and all of its subsidiaries collectively as “Etsy”).

The Etsy Payments Policy is also a part of our Terms of Use. By using any of our Services, you’re agreeing to the Terms of Use.

2. Overview

Etsy Payments allows sellers to (a) accept payment by authorized credit and debit card transactions, some bank transfers services, PayPal, transactions using Apple Pay, and transactions using Android Pay, (b) have those funds credited to a seller’s payment account with Etsy, and (c) have those funds deposited into a seller’s designated bank account.

Etsy Payments is only available to sellers who are at least 18 years old who register and are approved for a payment account with Etsy. Etsy Payments is currently available to sellers in Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, and United States.

Sellers may only use Etsy Payments for the sale of items listed on Etsy’s Services, and agree to ship sold items once a payment transaction is complete and reflected in their payment account. Etsy reserves the right to terminate a seller’s access to Etsy Payments if the seller uses Etsy Payments in any other manner.

Buyers may authorize a payment with any major credit or debit card accepted by Etsy, with Etsy Gift Cards and Etsy Credits, by certain bank transfer services, or through PayPal, Apple Pay, or Android Pay.

3. Third-Party Services

Etsy has engaged third-party service providers to perform many of the services related to payment processing, including card processing, currency exchange, identity verification, fraud analysis and regulatory compliance.

Etsy partners with Worldpay, PayPal, Adyen, and other licensed payment processors to facilitate card payments and other payments and the disbursement of funds to sellers. The provider and processing time for your payment will vary based on the country in which you're located. If there are insufficient funds in your bank account when our provider processes the payment for your purchase, Etsy reserves the right to contact you directly and to seek payment.

Etsy may share your personal or transactional information with those third-party service providers when it's necessary to process payments.

Etsy Gift Cards and Etsy Credits are subject to the Gift Cards & Etsy Credits Policy.

By using a third-party service, you may also be subject to an agreement with the third-party. For example, PayPal is a third-party service provided by PayPal Holdings, Inc. and is subject to the PayPal User Agreement. Apple Pay is a third-party service provided by Apple Inc. and is subject to the Apple Pay Terms and Conditions. Android Pay is a third-party service provided by Google Payment Corp. and is subject to the Android Pay Terms and Conditions for US Users and Users outside the US.

If Etsy receives notice that your shop's content or activity violates a third party's service agreement, we may at our sole discretion take action against your account to comply with their policies. Such actions may include canceling a transaction, disabling listings from your shop, suspending your selling privileges, or removing certain payment methods.

PayPal

Etsy supports two versions of PayPal: integrated PayPal and standalone PayPal.

Integrated PayPal. Integrated PayPal allows sellers to receive funds from PayPal purchases directly into their Etsy payment account, without the need to manage a separate PayPal account. This means that if a buyer pays with PayPal, the funds from the order will be credited to a seller's payment account along with the rest of the orders. The standard Etsy Payments Payment Processing Fee (described below) applies to orders that go through integrated PayPal; there is no additional PayPal fee.

Standalone PayPal. For sellers accepting standalone PayPal, you will receive funds from PayPal purchases directly into your PayPal account. This payment method exists for sellers in countries that are not yet eligible for Etsy Payments and for sellers in certain countries who have opted to continue receiving funds into their standalone PayPal accounts. Sellers who accept standalone PayPal will continue to pay PayPal fees. Orders paid through standalone PayPal are not covered by Etsy’s Seller Protection Program. Please note, in certain circumstances where a seller accepts Etsy Payments and standalone PayPal, it may be necessary for Etsy to process some PayPal transactions through integrated PayPal. For example, if a buyer chooses to pay with an Etsy Gift Card or Etsy Credit and covers the remaining balance using PayPal, Etsy can only process the transaction through integrated PayPal. Similarly, if a buyer purchases items from multiple shops in a single transaction and chooses PayPal as the payment method, Etsy may have to process the transaction through integrated PayPal.

4. Etsy’s Rights and Responsibilities

Etsy Payments functionality may be made available, modified, or discontinued by us at any time without notice and is subject to the limitations in Etsy’s Terms of Use.

As a security measure, we may impose transaction limits on buyers and sellers. For example, we may impose limits relating to the value of any transaction, deposit, or adjustment, or limits relating to the cumulative value of all transactions, deposits, or adjustments during a period of time. We may also impose limits related to the number of transactions per day or other period of time. We will not be liable to a seller: (a) if we do not proceed with a transaction, deposit, or adjustment that would exceed any limit established by us, or (b) if we permit a buyer to withdraw from a transaction.

Etsy may refuse service of Etsy Payments to anyone, for any reason, at any time.

Etsy reserves the right to decline transactions that we believe to be high risk, fraudulent, or in violation of Etsy’s Terms of Use.

In the event that a buyer does not make payment for the purchase of a legitimate item sold using Etsy Payments (e.g., where the buyer used a stolen or unauthorized credit card), Etsy may provide limited payment protection to the seller, in the interest of fairness. You can learn more about our Seller Protection Program here.

Etsy maintains records associated with transactions on Etsy Payments and does not pass any secure data, including credit card numbers or bank account information to any sellers. Sellers will only receive shipping information and limited buyer account information necessary to complete the order. Etsy’s Privacy Policy further explains how Etsy handles user information.

Etsy will send you any relevant notices regarding your use of Etsy Payments in accordance with our Electronic Communications Policy.

5. Seller Rights and Responsibilities

A. Use of Etsy Payments. If you live in a country in which Etsy Payments is available, you are required to sign up for Etsy Payments, which will result in your shop accepting payment through authorized credit and debit card transactions, some bank transfer services, PayPal, Apple Pay, and Android Pay. For you to sign up for Etsy Payments and receive payment for transactions made through Etsy Payments, you must provide valid account information for a bank account in the United States, Australia, Canada, the European Union, Hong Kong, New Zealand, Norway, Singapore, or Switzerland. Without this information, Etsy cannot pay you! You can find instructions about how to upload your bank account information here. If you live in a country in which Etsy Payments is available and you do not provide Etsy with this information, Etsy may refuse you access to the Services until you do so.

B. Payment Accounts. Etsy Payments is only available to sellers who register and are approved for a payment account. A payment account allows sellers to track payment amounts, refunds, and fees related to transactions. Sellers must provide accurate personal information as requested during registration, and are responsible for maintaining and updating that information as necessary. Sellers will not impersonate any person or use a name he or she is not legally authorized to use. Sellers authorize us, and authorized agents, to verify the their information (including any updated information) by accessing public records and obtaining credit reports about the sellers in order to approve a payment account. Sellers also authorize Etsy to verify the sellers’ information from time to time while the sellers are using Etsy Payments. Etsy verifies sellers’ information in order to safeguard the integrity of the marketplace and reduce the risk of fraud, money laundering, terrorist financing, and the violation of trade sanctions.

Payment accounts are only available to individuals who are eligible to be sellers on Etsy’s services and who have a valid credit or debit card on file with Etsy, unless they are exempt from this requirement. Sellers who have bank accounts established in Austria, Germany, and the Netherlands are not required to have a credit card on file with Etsy to have a payment account.

C. Disputes. Sellers agree to resolve any disputes directly with a buyer or with the assistance of the dispute management and refund tools available on Etsy, and in accordance with our Seller Policy and Terms of Use. In the event that a dispute is escalated to Etsy’s Support Team, Etsy reserves the right to issue a refund to a buyer if a transaction is found to be in violation of Etsy’s Seller Policy and Terms of Use.

In the event that a buyer submits a chargeback, Etsy will respond to the credit card networks on behalf of the seller involved in the transaction; the seller agrees to provide any requested information to us within five calendar days of the request. Etsy reserves the right to recoup funds associated with buyer chargebacks.

D. Communications. We will inform sellers of each transaction, or of other information pertaining to Etsy Payments, using our standard communication procedures (detailed in our Electronic Communications Policy), including by email or through Etsy's Conversations tool.

E. Refunds. Refunds or adjustments paid by Etsy to buyers for payments made through Etsy Payments may be initiated using the refund functionality in the seller's payment account. Any such funds paid by Etsy to cover refunds will be deducted from the seller’s payment account balance. If there are insufficient funds to cover the amount of the refund, the balance will be charged to the seller’s credit card or added to the seller’s Etsy bill.

Fully refunded transactions may be eligible for cancellation in accordance with the Seller Policy and this Help article.

F. International Trade Laws. You agree that your use of Etsy Payments will not involve any countries, entities, individuals or items prohibited by sanctions, embargoes, regulations or orders administered by the US Department of Treasury’s Office of Foreign Assets Control (“OFAC”) or other government agencies.

6. Appointment of Etsy as Limited Collection Agent for Sellers

Each seller appoints Etsy as its agent for the limited purpose of receiving, holding and settling payments to seller. Etsy will settle payments that are actually received by Etsy to each seller, less any amounts owed to Etsy and subject to these Terms. Each seller agrees that a buyer payment received by Etsy, on behalf of seller, satisfies the buyer's obligations to make payment to seller, regardless of whether Etsy actually settles such payment to seller. If Etsy does not settle any such payments as described in these Terms to a seller, such seller will have recourse only against Etsy and not the buyer.

7. Deposits

A. Payment Account. All funds resulting from a completed transaction will be reflected as a balance in a seller’s payment account. Transactions are considered complete once the payment is approved by Etsy or our fraud analysis service provider. Any refunds, adjustments, or other amounts paid to buyers in connection with purchases, or for funds received since the last payment day, are also applied to the seller’s payment account balance.

Funds in a payment account balance are eligible for deposit (the “Available Balance”) into a seller’s bank account at the end of any applicable deposit delay, reserve, or hold period as determined by the seller’s bank.

B. Country and Currency Options. Available Balances can only be deposited into bank accounts in the United States, Australia, Canada, the European Union, Hong Kong, New Zealand, Norway, Singapore, and Switzerland in the following currencies: USD, AUD, CAD, CHF, DKK, EUR, GBP, HKD, NZD, NOK, SEK, and SGD.

C. Scheduled Deposits. Etsy will instruct our payments partners to initiate a deposit of a seller’s Available Balance into the seller’s bank account on a daily, weekly, biweekly, or monthly basis. Sellers can select the frequency of disbursements from their payment account in their account settings. When a seller selects daily disbursements, disbursements will be made on each day that the seller's payment account has a balance equal to or greater than the minimum daily disbursement thresholds listed below. When a seller selects weekly, biweekly, or monthly disbursements, disbursements will be made on every applicable Monday. In this policy we'll refer to the date of disbursement as the "Payment Date". Deposits into a seller’s bank account will generally be credited within three (3) to five (5) business days from the date Etsy initiates the deposit request. The actual timing of the deposit may depend on how quickly a seller’s bank processes the request.

Daily Disbursement Thresholds by Currency:

Currency Threshold
AUD 25.00
CAD 25.00
CHF 15.00
DKK 200.00
EUR 20.00
GBP 15.00
HKD 200.00
NOK 25.00
SEK 100.00
SGD 25.00
USD 25.00

The Payment Date will fall on the next business day (Monday through Friday, excluding bank holidays) if the scheduled Payment Date falls on a non-business day. If a seller elects to change the frequency of disbursements, the following deposit will be initiated on the next business day if the seller selects daily disbursements, or on the next applicable Monday if the seller selects weekly, biweekly, or monthly disbursements. When a seller either initially provides or later changes his or her bank account information, the seller must wait at least five (5) calendar days to request a deposit into a bank account as a security precaution. The next scheduled deposit after a change to bank account information will occur on the next applicable Payment Date after a period of five (5) calendar days from the date of the requested change.

D. Holds and Delays. In some cases, deposits to sellers’ bank accounts could be temporarily delayed by an issue at Etsy, at Etsy’s third-party service providers, or at a seller’s bank. We’ll do our best to communicate with the affected sellers as soon as we can.

If we believe that a seller's actions may result in buyer disputes, chargebacks, or other claims, then we may, in our sole discretion, put (1) a hold, (2) a deposit delay, or (3) a reserve on the seller’s payment account balance.

A hold may be put on funds associated with a particular transaction if there is a dispute or investigation related to the order, for the shorter of: (a) 180 days after the estimated delivery date; or (b) completion of any investigation regarding the seller’s actions.

Deposit delays are defined as the number of days between a sale and the day the net amount from the sale becomes available for deposit, provided the payment has been completed. A deposit delay may be between 0 and 180 days. A deposit delay is applied across all transactions for a seller and the number of days is reflected in each seller’s payment account.

A reserve is defined as a fixed percentage of a seller’s payment account balance delayed prior to being included as part of a seller’s Available Balance for a period of up to 180 days.

If Etsy places a hold, a deposit delay or a reserve on a seller’s account, we’ll do our best to communicate with the affected seller as soon as we can.

We always work hard to avoid and minimize any delays. However, please note that Etsy is not obligated to refund any fees or reimburse any expenses due to holds or delayed deposits.

E. Escheatment. If Etsy cannot settle funds into a seller’s bank account, the funds will remain in the seller’s payment account. It is the seller’s sole responsibility to update his or her bank account information to receive the funds. If a seller fails to update the information to claim the funds within a certain period of time, Etsy will escheat the funds to the relevant government authority in order to comply with escheatment laws.

8. Recoupment

A. We reserve the right, in our sole discretion, to seek reimbursement from a seller in any of the following circumstances: (a) we provide a refund to a buyer because a seller did not promptly deliver the goods or we otherwise determine, consistent with Section 5 (Seller Rights and Responsibilities), that a refund is warranted in a particular circumstance, (b) we discover erroneous or duplicate transactions related to a seller, (c) we receive a chargeback from a buyer's credit card issuer or reversal of payment for the amount of a buyer's purchase from a seller, or (d) a seller does not act in accordance with Etsy’s Terms of Use or any policy thereunder.

B. We may obtain reimbursement of any amounts owed by a seller to Etsy by deducting from future payments owed to the seller, reversing any credits to the seller’s payment account balance, charging the seller's credit card on file, charging the seller’s bill, or seeking reimbursement from the seller by any other lawful means, including by using third-party collections services. You authorize us to use any or all of the foregoing methods to seek reimbursement.

9. Payment Processing Fees

A. Overview. Etsy charges a fee (the “Payment Processing Fee”) for processing each transaction through Etsy Payments. The fee amount will be assessed on the gross order amount, including shipping and tax (if applicable). Payment Processing Fees will be reflected in your payment account. Unlike other fees charged by Etsy, the Payment Processing Fee will be deducted from the total amount of the payment at the time the payment is considered complete. We reserve the right to modify the Payment Processing Fee at any time. In the event of any partial or full refunds credited back to a buyer, the Payment Processing Fee and other applicable fees will be recalculated based on the adjusted sale price. The difference between the original Payment Processing Fee and the adjusted Payment Processing Fee will be applied to the refund amount being credited back to the seller. Other applicable fees will be refunded on the seller’s bill.

B. Fee Amount. Payment Processing Fees vary based on the location of a seller’s bank account.

Payment Processing Fees by seller’s bank account country:

Location of Bank Account Etsy Payments Fees (% of total sale price + flat fee per order)
Australia (domestic orders) 3% + 0.25 AUD
Australia (international orders) 4% + 0.25 AUD
Austria 4% + 0.30 EUR
Belgium 4% + 0.30 EUR
Bulgaria 4% + 0.30 EUR
Canada (domestic orders; orders from the US) 3% + 0.25 CAD
Canada (international orders) 4% + 0.25 CAD
Croatia 4% + 0.30 EUR
Cyprus 4% + 0.30 EUR
Czech Republic 4% + 0.30 EUR
Denmark 4% + 2.50 DKK
Estonia 4% + 0.30 EUR
Finland 4% + 0.30 EUR
France 4% + 0.30 EUR
Germany 4% + 0.30 EUR
Greece 4% + 0.30 EUR
Hong Kong 4.4% + 2.00 HKD
Hungary 4% + 0.30 EUR
Ireland 4% + 0.30 EUR
Italy 4% + 0.30 EUR
Latvia 4% + 0.30 EUR
Lithuania 4% + 0.30 EUR
Luxembourg 4% + 0.30 EUR
Malta 4% + 0.30 EUR
Netherlands 4% + 0.30 EUR
New Zealand (domestic orders) 3% + 0.30 NZD
New Zealand (international orders) 4% + 0.30 NZD
Norway 4% + 2.50 NOK
Poland 4% + 0.30 EUR
Portugal 4% + 0.30 EUR
Romania 4% + 0.30 EUR
Singapore 4.4% + 0.35 SGD
Slovakia 4% + 0.30 EUR
Slovenia 4% + 0.30 EUR
Spain 4% + 0.30 EUR
Sweden 4% + 3.00 SEK
Switzerland 4% + 0.50 CHF
United Kingdom 4% + 0.20 GBP
United States 3% + 0.25 USD

C. Listing Currency Conversion Considerations for Sellers. When a seller lists and subsequently sells an item in a currency other than the currency of the seller's payment account, Etsy will settle the associated transaction proceeds in the currency of the seller's payment account. When such a service is required, Etsy applies an additional 2.5% transaction charge. Calculation rates are updated hourly.

D. Browsing Currency Considerations for Buyers. In the case of a buyer purchasing from a seller who lists in a currency other than the buyer's browsing currency, Etsy will automatically calculate the listing price in the buyer's browsing currency. When such a calculation is required, Etsy applies an additional 2.5% transaction charge. Calculation rates are updated hourly.

E. Interest. In the United States, Etsy may earn interest or other compensation from the balances in our bank accounts that result from the timing difference between our being paid by buyers and our bank account being debited to pay payment account Available Balances to sellers.

10. Reporting Obligations

Internal Revenue Service regulations require that we file a Form 1099-K to report unadjusted annual gross sales information for sellers located in the United States or being paid in USD that meet both of the following thresholds in a calendar year (reporting):

A. More than $20,000 USD in gross sales, and
B. More than 200 transactions.

To comply with these regulations, sellers who approach 150 (one hundred and fifty) transactions in a calendar year, regardless of sales volume and aggregated across his or her Shops, will be required to provide taxpayer-identification information to Etsy.

11. Termination

Sellers may terminate this contract and their acceptance of Etsy Payments at any time by adjusting the Settings in their account with Etsy. Etsy may also terminate or suspend a seller’s use of Etsy Payments at any time.

Upon termination, any non-disputed available balance will be deposited into a seller’s bank account. Etsy reserves the right, upon termination of access to Etsy Payments, to set off against any payments to be made to the seller, an amount determined by us to be adequate to cover any anticipated chargebacks, refunds, adjustments or other amounts that might be paid to buyers in connection with purchases from the seller's payment account for a prospective 180-day period. At the end of the 180-day period following termination, we will disburse to the seller any amount not used to offset chargebacks, refunds, adjustments, or such other amounts paid to buyers, or seek reimbursement from the seller via any of the means authorized in this Policy for any additional amount required to offset chargebacks, refunds, adjustments, or other amounts paid to buyers, as applicable.

Last updated on Jun 8, 2017